Entity Formation Service

Conducting your trading business in an entity unlocks several additional tax benefits. With recent tax reform, 2018 may be the year you decide to form an entity, depending on your circumstances.

We offer our entity formation service to retail and proprietary traders. Read Entity Solutions For Traders.

Before signing up for this service, we require a 45-minute consultation with Robert A. Green, CPA or Darren Neuschwander, CPA to determine if an entity is right for you and the best choice of entity. For example, some traders may not qualify for trader tax status, yet an entity requires this for business tax breaks and the QBI deduction under the new law.

Trading other people’s (i.e., investors) money is considered investment management and we recommend an outside law firm. Read Investment Management Services.

Entity Formation Service
Our entity formation service includes a 60-minute meeting to form the business, and a 15-minute consultation approximately 30 days later to review execution and begin tax planning. It includes:

  • Finalize the entity plans and form an LLC or corporation using our BizFilings services (see below). (General partnerships don’t require a state filing.)
  • We go through formation and start-up tax issues including ownership percentages with a spouse, profit-sharing allocations, initial capital contributions, and tax elections (S-Corp, Section 475 MTM securities, Section 988 forex). We also cover employee-benefit plan deductions (retirement and health), payroll planning, tax strategies including Section 195 start-up costs and Section 248 organization expenditures, banking needs, accounting solutions, S-Corp expense reimbursement (accountable) plans, and tax planning under the new tax law.

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BizFilings online incorporation service

We use bizfilings.com for forming LLCs and corporations in all states. We don’t need an online incorporation service for creating general partnerships. We use their service during our meetings, and the client pays the cost directly by credit card. (Bizfilings pays Green & Company, Inc. a commission.)

Outside attorney service for legal paperwork

We are not a law firm, and you should consider engaging an outside attorney for legal services. We’ll recommend an attorney that has worked with us for many years, and she can handle execution of the legal paperwork, including:

  • Corporations and LLCs: online application for federal EIN (tax identification number); guidance on applicable local laws about tax registration. For LLCs: customized standard operating agreement and resolutions for those electing or considering S-corp status; preparation of state and federal S-corp election. For corporations: customized standard bylaws, minutes of the first shareholder meeting and resolutions; resolutions for those electing or considering S-corp status; preparation of state and federal S-corp election.
  • Partnerships: name check, guidance on the applicable local law on fictitious business names (FBNs), online application for EIN, advice on the relevant local law about tax registration, customized standard partnership agreements and resolutions.
  • Disclaimer: Our outside attorney and BizFilings advise clients throughout the U.S. Some issues vary by state, county, city and town jurisdiction. Consider getting local attorney advice for compliance when appropriate. There are other issues to consider like local property taxes, too.
  • Price: Our outside attorney charges $235 for most of these engagements (if you have a profit-allocation clause, the cost is $340). During the entity formation process, we will email you a link to the attorney’s website for engaging her.

Total Costs

Our entity formation service fee is $425. Our outside attorney is $235. The total is $660 for a general partnership.

For an LLC or corporation, including an S-Corp election, take $660 and add the $99 bizfilings online incorporation fee (plus $60 if you want it expedited), and $125 for average state filing fees (all states vary). This totals approximately $1,000.

If you have any questions about our entity formation services, please contact us.

We look forward to working with you soon.